1.1 The NorthEast Process Industry Cluster
(NEPIC) has, over several years, been actively seeking the views
of those parties involved in the Process Industry of the region,
including those in the engineering supply chain, regarding the
current and anticipated skills position affecting their interests.
This information has been used to provide a breakdown of the engineering
needs associated with the sector in this region and these are
broken down in the body of the response.

1.2 NEPIC has around 350 member companies
and has conducted skills surveys within this membership in recent
years. Additional knowledge has been based on an understanding
of other sectors in the region. This has indicated that there
is a need for around 3,100 graduates and 3,750 vocational level
candidates to enter the engineering industries by 2018.

1.3 NEPIC is creatively seeking ways in
which to add to the available pool of labour available to industry,
and in particular the Process Industries. This seeks to address
the issue at several levels, beginning with engagement with young
people of primary school age and continuing throughout education
to graduate attraction.

1.4 It is clear that there is a need for
other schemes to attract young people into engineering, both through
vocational and graduate routes, but also to attract other groups,
including those in employment but seeking to transform their career,
to be able to change direction and retrain in engineering disciplines
if we are to be able to meet the anticipated demand for skilled
people in the future.

2. INTRODUCTION

2.1 We would like to thank you for providing
us with the opportunity to provide information on the situation
within the Northeast of England with regard to engineering skills,
and in particular that affecting the Process Industries of the
region. The response detailed below relates to both the state
of graduate and vocational level engineering personnel and includes
an estimate of the requirements for these people for the period
up to 2018.

2.2 The Northeast Process Industry Cluster
(NEPIC) was formed three years ago from a merger between the Teesside
Chemicals Initiative and the Pharmaceutical and Speciality Cluster
that were in operation in the region. The main remit of NEPIC
is to ensure that the cluster of Process Industry (PI) companies,
and their associated supply chain, in the region can develop and
thrive by the development of a strong cluster working in collaboration
to resolve issues and so ensure the sustainability of the manufacturing
base.

2.3 Within the region the PI sector accounts
for around 25% of the regional GDP, employing around 40,000 directly
and 400,000 indirectly. It is estimated that there are around
520 companies in the region that are involved in the cluster,
out of which NEPIC has around 350 member companies.

2.4 The information contained within this
submission is based on a detailed knowledge of the Process Industries,
gathered from many years experience of working in this field,
and some detailed skills surveys, as well as an understanding
of other sectors based on a good understanding of other industrial
sectors in the region.

3. PROCESS INDUSTRY-MANUFACTURING
BASE

3.1 The process industry in the Northeast
of England is currently undergoing a period of significant capital
investment, with around £5 billion currently being invested
and a similar amount planned for the future. The anticipated additional
engineering intake as a result of these activities is set out
below:

Chemical Engineers

- New Graduates

140 per year

- Mature Graduates

30 per year

Mechanical/Control/Electrical Engineers

- New Graduates

110 per year

- Mature graduates

30 per year

Total Graduate intake

310 per year

Vocational Engineering Apprentices

200 per year

Vocational Engineering Mature Tradesmen

175 per year

Total Vocational Intake

375 per year

3.2 This equates to a requirement for the period 2008
to 2018 of around 3,100 new engineering graduates to enter the
industry and around 3,750 new vocational level entrants to the
industry.

4. NON-PROCESS
INDUSTRY-MANUFACTURING

4.1 The level of change and development within other
industries in the Northeast of England is also leading to a rise
in demand for engineering staff. The other industries that we
have considered include, but are not limited to, Iron and Steelmaking,
Shipbuilding/Offshore Capital Construction, Power Generation/Utilities,
Food Processing, Engineering Manufacture/Fabrication and Automotive.

4.2 We have assumed that the combined size of these industries
in terms of employment, GDP etc is approximately 1.5 times that
of the Process Industries and that the requirement for Chemical
Engineers in this field is around 15% of that in the Process Industries.
This results in the following anticipated demand:

Chemical Engineers

- New Graduates

23 per year

- Mature Graduates

7 per year

Mechanical/Control/Electrical Engineers

- New Graduates

300 per year

- Mature graduates

135 per year

Total Graduate intake

465 per year

Vocational Engineering Apprentices

300 per year

Vocational Engineering Mature Tradesmen

260 per year

Total Vocational Intake

560 per year

4.3 Because of the spread of the projects currently identified
within the region, we would expect the demand for these employees
to be at different levels during the period under consideration,
and the anticipated total engineering graduate and vocational
level needs are thought likely to fall by around 50% for the period
2013-18. Clearly this is based on the level of understanding at
the time of writing, but this may change as new projects are developed.
The anticipate demand, taking this into account, is set out below:

2008-12 Total Engineering Graduate Demand

2,325

2013-18 Total Engineering Graduate Demand

1,150

Total Graduate requirement 2008-18

3,475

2008-12 Total Vocational Engineering Resource Requirement

2,800

2013-18 Total Vocational Engineering Resource Requirement

1,400

Total vocational requirement 2008-18

£4,200

5. NORTHEAST INDUSTRY
ENGINEERING SUPPLY
CHAIN REQUIREMENTS

5.1 This section includes requirements for Project Management,
Project Construction, Contracted Plant Maintenance, Logistics
and Engineering Machining. The estimated requirements are based
on the following key parameters:

- Potential for reducing the scale of the regional non-Process
Industry Manufacturing Group from 2013 onwards.

5.2 This gives an anticipated demand for these groups
as follows:

Chemical Engineers

- New Graduates

150 per year

- Mature Graduates

100 per year

Mechanical/Control/Electrical Engineers

- New Graduates

200 per year

- Mature graduates

100 per year

Total Graduate intake

550 per year

Vocational Engineering Apprentices

600 per year

Vocational Engineering Mature Tradesmen

200 per year

Total Vocational Intake

800 per year

5.3 This gives a total Graduate engineering requirement
of around 5,500 over the period 2008-18 and a total Vocational
engineering requirement of around 8,000 for the Engineering Supply
Chain.

6. NEPIC'S CURRENT
WORK

6.1 As a result of our analysis of the ongoing requirements,
based on many years of experience within the region and a detailed
industry led analysis of the skills needs for the next ten years,
NEPIC has instigated several projects aimed at addressing some
of these anticipated requirements. NEPIC will also be developing,
alongside the new National Skills Academy for the Process Industries
(NSAPI) other ways of attracting and training engineering personnel
into the region's industrial base. The main projects in operation
are set out below:

6.1.1 Graduate Attraction

- NEPIC is attending an increasing amount of Graduate
Recruitment Fairs around the UK, to improve knowledge and understanding
of the opportunities available to new graduates. During 2007 there
was a NEPIC presence at eight such fairs.

- NEPIC is working with University Careers Advisory Services
to improve the awareness of Advisors about the status of the Process
Industries and the opportunities that this presents.

- NEPIC has produced a Graduate Recruitment DVD promoting
the region as well as the manufacturing companies of the region
to potential new entrants from university. This can be viewed
online at .www.nepic.co.uk.

6.1.2 Apprenticeships

- NEPIC is supporting several programmes aimed at improving
the attractiveness and uptake of apprenticeship programmes across
the region.

- NEPIC has produced an information DVD for schools promoting
the vocational access route to industry, including highlighting
this as an alternative route to study for a degree. This can be
viewed online at .www.nepic.co.uk.

6.1.3 Retraining of other skilled people

- NEPIC is developing retraining programmes aimed at several
groups of potential employees that are currently not suitable
for entry to the Process and associate industries. These include:

- Armed Forces personnel who require some reskilling to be
able to work in the industries.

- Long term unemployed who require both vocational training
and workskills training before being in a position to enter the
pool of available workers.

- ex-offenders who similarly require both vocational and workskills
training, but who may also provide difficulties due to other restrictions
that are placed on them.

6.1.4 Engagement with Young People

- NEPIC is a supporter of Children Challenging Industry
in the region, encouraging young people to study STEM subject
and potentially entering the available workpool when they leave
school:

- NEPIC operates the SETPOINT contract for Northumberland,
providing STEM advice and support to schools and educationalists
in the region. This also involves the coordination of the Science
& Engineering Ambassadors scheme for the county, which provides
Ambassadors who work within the STEM subject areas to help enthuse
and encourage children in the STEM arena.

- Two Science Education Units that operate within NEPIC's
geographical area provide further opportunities for trained educationalists
to provide schoolteachers and students with an opportunity to
see the positive benefits of science and encourage the uptake
of these subjects by children.

6.2 NEPIC aims, by the continued development of this
multi-faceted approach, to close some of the gap in skills that
have been identified. It is not possible, however, for one organisation
to do this alone and other programmes are needed if we are to
fill the gap between the current and future positions.

6.3 It is important that any programmes that are developed
utilise the expertise contained within industry, and that funding
is made available in such a way that the available pool of workers
can be enriched without undue burden on employers, but that those
with transferable skills can be brought to an acceptable standard
for entry to the workplace and can be developed further in future
years.

6.4 NEPIC would welcome the opportunity to be involved
in the development of such programmes and to work with Government,
RDAs and other bodies to find ways of closing the gap in skills
that exists at this time.